Which combination of conditions is sufficient for the term 'insurance broker' to be used by a firm, by itself?

• A. Only the condition that at least 20 agency appointments with different product producers.
• B. Only the condition that an option to pay by fee is offered.
• C. Only the condition that at least 75% of regulated annual turnover is on a fair analysis basis.
• D. All of the above.

Answer: (C)

The key idea is that being considered an insurance broker is defined by the nature of the firm’s revenue and advice—specifically, that the business principally conducts impartial analysis and presentation of products from multiple providers for clients. When at least 75% of the firm’s regulated annual turnover comes from a fair analysis basis, it demonstrates that the firm is primarily engaged in independent comparison and recommendation for clients rather than being driven by product-producer arrangements or fees tied to a single model. That independent, client-focused advisory activity is what qualifies the firm as an insurance broker on its own.

Having many agency appointments with different product producers doesn’t by itself prove broker status, since it could still reflect a distribution model tied to those producers. Offering an option to pay by fee likewise doesn’t prove the independence or advisory focus necessary for broker classification. Therefore, only the 75% fair analysis turnover criterion is sufficient by itself, making it the best answer.